Jetstar wins big state contract
Jetstar has been chosen as a long- term supplier of lucrative government travel for the first time while Air New Zealand is yet to sign any deal.
The Qantas- owned airline will provide travel for public servants and government agencies on domestic routes, after a hotly contested bidding round for the 10- year deal.
Last year all- of- government air travel was worth $ 223 million, split between a number of airlines.
The Ministry of Business, Innovation and Employment says it is still in discussions with other air travel suppliers, including Air New Zealand, with a view to including them on the panel.
Air New Zealand i s 52 per cent owned by the Government and was a big provider of air travel previously.
Other international airlines including Emirates, Etihad, LATAM, Lufthansa, Singapore Airlines, United Airlines and Virgin Airlines are on the list.
A small domestic carrier, Sounds Air, has also been signed up as an official supplier.
A spokeswoman for Air New Zealand, when asked for comment on the deal, said: “The Government works with a panel of suppliers for its domestic and international air travel. Air New Zealand i s in positive discussions about our ongoing role as a supplier.”
Asked what would happen in areas Jetstar didn't serve, the ministry said it was possible to buy flights from nonpanel suppliers if the panel suppliers could not meet the needs of that journey, such as not flying to a specific destination.
“Negotiations with Air New Zealand are ongoing, and we are unable to specify when they might end. We will announce the outcome when negotiations conclude.”
Jetstar Group’s chief executive, Jayne Hrdlicka, said the airline was now firmly established in New Zealand and able to provide the Government with a choice for domestic jet and regional travel to a range of destinations
Jetstar is part of the Qantas group and Qantas i s again a supplier for transtasman and long- haul services.
Hrdlicka said the choice of airline to fly main trunk and some regional routes would save taxpayers money.
The Jetstar chief executive said that with short flight times within New Zealand, a low- fare domestic airline option made economic sense for government travel.
Jetstar began domestic services in New Zealand nearly eight years ago and carries more than t wo million passengers every year.
The airline’s regional destination had added 600,000 seats to its operation.
Qantas has been a supplier to the Government since 2012.